In 2024, Klaus Schwab announced his departure from the WEF’s day-to-day management and now serves as the chairman of its board of trustees. While he – like all leaders of influential organizations – has received his fair share of criticism, he undoubtedly “got it right” when recognising and acting on the importance of:

01 Globalisation

In the late 1960s and early 1970s, there was a widespread concern in Europe about American economic dominance. This concern was popularised by Jean-Jacques Servan-Schreiber’s book “Le défi américain” (“The American Challenge”), which highlighted the perceived technological and managerial gap between Europe and the USA. This “American challenge” included the fear that European companies would be sold to American investors and that the US would dominate markets due to its advancements in technology and management.

Klaus Schwab founded the European Management Forum in 1971 as a direct response to this “management gap”. Schwab was motivated by Servan-Schreiber’s book and wanted to help introduce European economic players to modern American economic methods. The initial 1971 meeting – organised to coincide with the 25th anniversary of the Centre d’Études Industrielles (CEI) in Geneva, where Schwab was teaching – involved a number of American participants, including US economist Harvard Business School Dean George P. Baker, who acted as chair, and liberal US economist John Kenneth Galbraith, who was a keynote speaker.

As the 1970s unfolded, however, geopolitical events like the oil crisis of 1973/1974 demonstrated that transatlantic competitive tensions were far from the only issues worth addressing on the global stage. Schwab invited Chinese statesman Deng Xiaoping to attend the European Management Forum in 1979 and by the 1980s was inviting other high-ranking political leaders from around the world. In 1987, Schwab changed the name of the organization to the World Economic Forum (WEF), marking a definitive emphasis on the global issues it is known for addressing today.

Lesson for UHNWIs

Schwab’s initial focus on bridging the transatlantic management gap was a prescient recognition of the increasing interconnectedness of economies. Expanding his organization’s scope demonstrated his ability to adapt to changing realities and recognize the broader implications of globalisation.

For UHNWIs, this historical trajectory offers a valuable lesson: globalisation is not a recent phenomenon, but a decades-long process with evolving dynamics. Just as Schwab recognized the need to broaden his initial focus, UHNWIs must adopt a global perspective when managing their wealth. Diversification across geographies and asset classes is crucial not only for maximising returns but also for mitigating risks associated with geopolitical instability and economic shocks in any single region. Security, both financial and personal, also takes on a global dimension in this context, requiring careful consideration of international regulations, political climates, and potential threats.

02 Stakeholder capitalism

Since 1971, Schwab and the Forum have continued to make a basic argument that businesses should not focus not just on financial profits but also the interests of customers, suppliers, and society as a whole.

This message has been a recurring theme at Davos meetings and has appeared in one form or another in even the earliest of Schwab’s books. Schwab, who holds a doctorate in engineering, published Moderne Unternehmensführung im Maschinenbau (Modern Management in Mechanical Engineering) in the same year as he founded the Forum. This short book included one of the earliest German-language discussions of the concept of what is today known as stakeholder capitalism.

Over recent years, many of the highest-profile global initiatives – discussed on the WEF stage or otherwise making headlines – related to stakeholder capitalism have revolved around the use of environmental, social, and governance (ESG) metrics for businesses. Internally, the WEF sets detailed operational guidance and standards regarding its organisation’s sustainable practices.

Lesson for UHNWIs

A frequent critique of the WEF in general and Schwab in particular is that they are creating an elitist facade: a spectacle of the world’s best-resourced individuals and organizations professing concern for global welfare while pursuing self-interest behind the scenes. For example, many supposedly green-minded WEF attendees have come under fire for adding to global warming by taking private jets to Davos.

It is hard to argue, however, that Schwab and the WEF have ever been inconsistent in their public stance on stakeholder capitalism. When Schwab published his first book in 1971, he and the Forum were nowhere near as influential as they are today. Throughout the decades, their emphasis on broader societal well-being has remained steadfast.

UHNWIs will not need the WEF to remind them that it is a good idea to think beyond their own interests. History holds countless examples of ultra-wealthy people advancing public good through philanthropy and socially-conscious business practices.

Instead, the lesson here is about the importance of defining principles, sticking to them, and leading by example. Enduring legacies stem from clear visions backed by decisive action.

Remember that any influential person’s vision of a better future – and the actions he or she takes to advance this vision – can be expected to receive at least a little criticism in one form or another.

03 Networking

Schwab is known as one of the world’s most influential networkers. His ability to bring together disparate groups of business leaders, politicians, and members of civil society was the primary driver behind the WEF’s rise to the global influence it enjoys today.

For example, his networking skills are widely regarded as having ultimately led to the creation of the World Trade Organization following the Uruguay round of General Agreement on Tariffs and Trade deliberations. The idea for these deliberations is said to have stemmed from discussions among WEF participants brought together by Schwab.

Lesson for UHNWIs

While the ultra-wealthy understand networking’s value for advancing immediate interests, the greater opportunity lies in becoming a connector. By strategically linking members of their networks, UHNWIs can create exponential value that extends far beyond bilateral relationships.

Just as Schwab’s power stemmed from connecting disparate groups, UHNWIs who facilitate meaningful introductions often find themselves at the center of valuable new ventures and opportunities. This reciprocal dynamic often creates a virtuous cycle: those known for making thoughtful connections tend to receive similar high-value introductions in return. The most valuable component of any network is its “nodes.”